Business Desk, Amar Ujala, Mumbai
Updated Tue, 15 Dec 2020 07:50 PM IST
Hear the news
These standards were to come into force from November 5, but in the absence of some clarifications, the central bank postponed them until December 14. Now, according to the new circular, it will be mandatory for customers to open their current account or overdraft account in the same bank from which they are taking loans. Let us tell you that this rule will be applicable to those customers who have taken a loan of more than Rs 50 crore from the bank.
Why did the RBI have to take such decisions?
According to the Reserve Bank, it has been seen many times that bank customers take loans from one bank and open a current account by going to another bank, which makes it very difficult to track the company’s cashflow. Therefore, the RBI issued a circular that no bank should open the current account of such customers who have availed cash credit or overdraft facility from elsewhere.